In the context of growth theory, the 'AK Model' is an example of:
A. A neoclassical model with diminishing returns
B. A model with exogenous technological progress only
C. An endogenous growth model without diminishing returns to capital
D. A model without capital accumulation
Answer: Option C
Solution (By JKSSB Mock Tests)
The AK model assumes a production function linear in capital (Y = AK), thereby eliminating diminishing returns and generating endogenous long-run growth driven by capital accumulation.
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